New law calls for overhaul of grant programs

President Clinton has signed into law a bill aimed at improving management of federal grant programs.

The Federal Financial Assistance Management Improvement Act, S. 468, requires the executive branch to create common application forms for multiple federal grant programs. The act also calls for an electronic system through which people can apply for numerous federal grants and a standard set of administrative rules for grant programs.

The act gives agencies 36 months to begin accepting grant applications electronically. Though he signed the bill, Clinton said the time frame is unrealistic.

"The act does not provide resources for, nor allow sufficient time to accomplish even partially, the very ambitious overhaul of grant programs that it requires," Clinton said. "In addition, the act anticipates a common application and reporting system for federal grant programs, but does not amend the many program statutes that establish different application and reporting requirements for different grant programs."

The federal government has more than 600 grant programs, many of which overlap, according to the Senate report accompanying the act. Eleven agencies and 20 offices administer 90 federal early childhood programs, for example.

"The goal of S. 468 is to improve the performance of federal grant and other assistance programs by streamlining their application, administration and reporting requirements and facilitating greater coordination among federal agencies and their non-federal partners," the Senate report said.